Inflation low, but household bills rising in '04

[RamboLiberal]

http://www.suntimes.com/output/news/cst-nws-price26.html

Economists have been saying for months that inflation is in check. You'd never know it from the size of the bills we'll all be paying next year.

Many household expenses will rise next year much more than inflation -- for everything from heating your home to paying taxes to eating out.

Some of those increases are projected to be in the double digits, even as inflation is likely to remain low. That's because the government's measure of inflation, the Consumer Price Index, takes all sorts of things into account -- not just those bills we all pay every month.

But there's some consolation: You can get a really cheap DVD player. Consumer electronics prices -- for things like DVD players, TVs and computers -- have dropped. Clothing prices also have been falling for most of the past decade, as more manufacturing of clothing and shoes is done overseas, and as stores offer discounts to lure shoppers.

[starroute]

1. Don't I just know it!

Our town is raising electric rates 17% next year. Water and sewage are going up 60% because they have to upgrade the system. Property taxes are up. So are homeowner's and auto insurance. Heating oil has already gone sky-high the last two years.

If we had enough money to buy DVD players, we might be more grateful. But as it is, all the things we can't do without are getting more expensive, and it's only the luxuries that are any cheaper.

[nadinbrzezinski]

2. Ok this tells me one thing

economists are not taking some basic expenses as part of inflation or cost of living... there are insurance, (services), Energy (Basic life needs), but they are taking DVDs as part of it? God we are screwed up... by this reasoning our REAL inflation is higher than whatever fanasy they want to sell us

[izzie]

8. I have not seen the list they used printed and can not find it.

It has been years since I have seen that list. It is like the % you get on SS. Now I will most likely get 10 more a month and congress will get over 5000 on their Cost of living raise. Does not make you fell good. If bread goes up , it goes up for congress and me. It is crazy. I think every thing I had to have last year went up and SS went up under 10 a month. My DVD should last for years. Where I live had an increase of 700 in town tax. What people are doing with this lower interest rate is really scary. I am watching people take the lower rate and taking a larger morg. then spending this extra money. It is crazy.

[snippy]

12. Here is a link to a list of the categories of items included.

ftp://ftp.bls.gov/pub/news.release/cpi.txt

[Hippo_Tron]

3. Exactly why the economy is not better post Bush tax cut...

Great talking point for our candidates.

[AP]

4. Prices of things you have choice to buy are low. Prices of things you HAVE

to buy, and have no choice about (utilities, health care, insurance, housing, credit card fees) go up. Even cable falls in that second categor. When there's a monopoly, or no real competion, that's where the big companies are getting their profits.

Hmm.

That's the Republicans brilliant notion of "capitalism" and it's barely capitalism.

And you know, since people are going into deeper and deeper debt each year, something ain't right.

[Sugarbleus]

13. Don't forget about FOOD... Can't believe how much it

Goes up nearly every month! I gave up premium cable services and will give up my second phone line soon...AND it's cold in here!

[JNelson6563]

15. you are so right AP

and that is the master plan. Minimal employment reduces discretionary spending but that's ok. If you milk the masses for everything they've got jsut for their necessities then who cares about the extras? As long as the top 1% holds most and those right below them are loyal lackeys nobody cares.

Sickening to see it playing out.

Julie

[wanderingbear]

5. Smeones lieing..

[Nite Owl]

6. The inflation numbers

have to be kept low by the government as Social Security increases are tied to inflation. Those who are living on social security checks and maybe some t-bonds are getting screwed so that the system won't go bankrupt. Same with the unemployment numbers. Europe seems to have higher unemployment but they count the unemployed realistically. We just drop people out of the system to make it look better.

[cliss]

7. what misguided priorities.

DVD's and consumer crap is bargain-basement priced. Meantime, the costs of owning a home are going up astronomically. Expect LOTS more foreclosures next year.

What the hell is a house full of junk good for, if you've got no home to put it into?

[xchrom]

9. the price for lot's of things

went up this last year.
i simply don't trust the fed right now and how they are figuring things.
it seems to me -- they want a devalued dollar for a certain period of time. much of it having to do with china.
if japan's plan to export itself out it's extended recesion was a bad idea -- why would it be a good idea here?
i'm afraid this wholesale discounting of protectionism regarding any countries economy will have to be revisited.
countrys need diversity of economy to truly thrive -- and whatever job an individual chooses -- they have to make a good living. we can't force the entire population into jobs the corporate facists want us to be in -- it'll kill the country.

[Wcross]

10. Health insurance!

My company is told us we will have to pay 60% more for our health insurance. I bet that IF I get a raise next year it won't cover the increase. I just seem to be going south as far as income/expense.

[snippy]

11. It is odd that this article does not mention healthcare or education costs

They are skyrocketing.

[BiggJawn]

14. Everything is going up NOW. forget about "next year"...

Oh, everything except my salary, of course...

Auto insurance went up around 15%, for everyone in Indiana.

Property taxes have skyrocketed, not because the rates were increased, but because of re-assesments like the one that jumped my GF's house from a value of 29 kilobucks to over 100 grand. That house is not worth that much. The house next door was on the market for over 2 years at 135 kilobucks, and it is a much nicer house.

In the last 2 years, the big University in town has rasied tuition. they announced last week that housing/board was going up 5% "for inflation". They give NO COLA to their employees, and "Merit raises", while running around 5-10% for Academics, typically is less than 2% for support staff. Even the BEST of support staff get 3% or less.

Medical care has increased. Insurance is up, doctors are refusing to script generics because they don't get a commission on them. Our 2 "not-for-profit" hospitals gave their former director a HUGE "lovely parting gift".

Utilities are up. Telephone-17%, Natural Gas-over 50%, water and sewer-15% and I bet electricity is going up soon because we're getting bombarded in our mailboxes with how wonderful it is that we have a municipal-owned COAL-generated electric utility. COAL is GOOD! and it's tasty, too!

Cable TV is obscene. both in content and what they charge for it.

Food is getting more expensive, gasoline goes up and down more than a biker's ass on friday night...

and they're projecting that things will cost more next year? But we're not having inflation.

Boy, those DVD players are gonna get less and less expensive, arent they?